Description

Mortgages and auto loans make up the majority of the loans at retail banks. Mortgage loan components include the principal, interest rate, mortgage term, amortization period, and repayment schedule. Individuals applying for mortgage applications are considered for credibility, down payment, and income or expense ratios. With an approved mortgage comes responsibilities for both the borrower or mortgagor, and the lender or mortgagee. Auto loans are similar to mortgages. Assets and liabilities, securities attached to the loan, credibility, the debt-to-income ratio, and the repayment arrangements are key in the loan consideration. These are the two most common loans, and arguably the most valuable to a bank.
This course examines the basic mortgage loan components, the mortgage application criteria, and borrower and lender responsibilities. The course also discusses auto loan components and the loan approval criteria.